The year-on-year inflation rate for Ghana’s Prime Building Cost Index (PBCI) increased to 5.1 percent in September 2026, up from 4.6 percent recorded in August, according to the latest Statistical Bulletin released by the Ghana Statistical Service (GSS).
The PBCI, which measures changes in the cost of constructing buildings by tracking prices of key inputs such as materials, labour and plant equipment, showed that construction cost pressures strengthened during the month despite only a marginal monthly increase.
Data from the bulletin indicated that the monthly change rate in September stood at 0.03 percent, reflecting relatively stable costs on a month-to-month basis.
The GSS explained that the index, based on 2023 as the reference year with an index value of 100, serves as a key indicator for investors, developers, contractors and policymakers in contract negotiations, project budgeting and monitoring inflation trends within the building sector.
At the group level, plant costs remained the largest source of inflationary pressure. The plant group recorded a year-on-year inflation rate of 19.1 percent in September, compared with 17.9 percent in August.
Material costs also rose, with inflation in the materials group increasing to 6.5 percent from 5.8 percent over the same period.
In contrast, labour costs continued to decline. The labour group recorded an inflation rate of negative 3.2 percent in September, compared with negative 2.9 percent in August, indicating lower labour costs relative to the same period a year earlier.
The report further showed significant variations across construction sub-groups.
Reinforcement recorded the highest year-on-year inflation rate at 29.0 percent, while steel registered the lowest rate at negative 8.8 percent.
According to the GSS, 14 out of the 23 sub-groups recorded inflation rates above the national average of 5.1 percent, highlighting uneven cost movements across different categories of construction inputs.
The latest figures suggest that while overall construction cost inflation remains moderate, rising material and plant costs continue to exert upward pressure on building expenses across the country.
Source: businesspostonline
